Argentina to make fresh cuts in bid to save peso
Argentina is expected to outline cuts today in a bid to stabilise the sliding peso.
The currency's value has declined more than 50 per cent this year, and stood at 36.90 against the dollar this morning.
President Mauricio Macri is also under pressure to reverse his policy of cutting farm export taxes, and a reduction in the number of government ministries was being discussed at crisis talks, local media reported.
Read more: Argentina hikes interest rates after peso plunge
Treasury minister Nicolas Dujovne is preparing to travel to Washington tomorrow to meet International Monetary Fund (IMF) head Christine Lagarde. Argentina has called on the IMF for the early release of a $50bn (£37.7bn) credit line.
The three-year deal was agreed in June, with $15bn released then and a second instalment due next month. As part of the IMF negotiations, the country agreed to cut its primary deficit to 1.3 per cent of gross domestic product under the programme.
"The market will likely be expecting a 2019 budget that makes a credible attempt to all but eliminate the primary deficit," said Jeffrey Lamoreaux, senior analyst at Fitch Solutions, told Reuters.
The South American country hiked interest rates to 60 per cent on Friday after the value of the peso plunged to a record low.
Read more: Argentina calls for early release of $50bn IMF support as crisis deepens